Internet travel agency Zuji.com expects online deals to form about 20 per cent of its market share in the travel industry in the next five years, thanks to budget airlines, says chief executive Scott Blume. He said that traditional bricks-and-mortar travel agencies would specialise in specific tour offerings as online transaction had gained market share in recent years. 'We don't think we threaten the offline agents. In fact, they can provide tailor-made services or specialise in dedicated routes,' said Mr Blume. The Singapore-based online travel agency said online transactions made up less than 10 per cent of the retail travel market. But revenue from online bookings last year grew 80 per cent year on year. Mr Blume believes online travel transactions will eventually dominate business. In the US, for instance, online deals account for more than 40 per cent of the total market. In Korea, the top 10 travel agents are all online operators. 'It's no doubt online transactions will grow substantially, although they do not yet have a significant portion of business.' In Hong Kong, Zuji was the second most visited online travel site with a market share of 7.41 per cent in December last year. The most popular site, China Travel Net, had 12.31 per cent market share for the same period, said internet traffic research firm Hitwise in a report last month. Hutchison Whampoa's subsidiary, Priceline.com, ranked 12th among the top 20 travel websites in Hong Kong with a market share of 2.18 per cent at the end of last year. 'We don't think Priceline's business model is suitable in the local market,' Mr Blume said, adding users prefer a transparent price list rather than bid for a price. Zuji became a wholly owned subsidiary of US online travel agent Travelocity last month at an acquisition price of US$34 million. Travelocity operates online travel agents Travelocity.com and Europe-based Lastminute.com. 'As we are a part of the Travelocity business, Zuji will enjoy economies of scale when striking global deals,' Mr Blume said.